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Build-to-Rent Warranty
We have two policies specifically created for the needs of the build-to-rent market. Our Private Rental Scheme (PRS) provides the latent defect warranty backing required by funders and institutional investors in purpose-built private rental schemes.
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Private Rental Warranty services
Private Rental (PRS)
This policy covers defects caused by failures in design, workmanship and materials for up to 12 years from issue of certificates to practical completion.
Reflecting a traditional structural warranty the policy is split into a Defects Insurance Period (DIP) in the first year and a Structural Insurance Period (SIP) for the reminder of the policy length.
Defects (as defined in the policy) are the responsibility of the builder during the DIP period, however if the builder fails to rectify defects in the first year we will cover this for you meaning your investment is secured from day one.
Why choose PRS Cover?
Cover during the DIP period covers a range of items, including many elements of M&E and tolerances. This can also be extended up to two years.
Private Rental Select (PRS Select)
This policy also covers against issues in design, workmanship and materials.
What makes it different?
It is a full risk-transfer policy from day one with no defects insurance period tied to the builder.
The biggest benefit of this policy is its long-term flexibility which includes:
- Significant reduction in upfront premium - due to variable excesses
- Reduced excess - if the asset is sold to another BTR operator you can reduce the variable excess based on the purchasers appetite
- Flexibility - the cover to be transferred from one overall certificate into individual residential certificates should you decide to sell to the open market during the insurance period of 10 or 12 years.
Who is PRS Select cover for?
This policy is well suited to a developer or investor comfortable with the initial defects liability provided directly by the builder but still wants the flexibility in later years to change the policy cover should they wish to exit.
Need advice on which private rental policy to choose?
Summary of cover
| Private Rental (PRS) | Private Rental Select | |
|---|---|---|
| Cover Period | 10 - 12 years cover Defects Insurance Period: 1 years Structural Insurance Period: Up to 11 years | 10 - 12 years cover No Defects Insurance Period |
| Financial Limit | New build: £500,000 Conversions: £250,000 | New build: up to £1,000,000 Conversions: up to £500,000 |
| Continuous Structure Limit | New Build: £25,000,000 Conversions: £5,000,000 High Value Scheme: £25,000,000 policy limit on request) | New Build: up to £25,000,000 (higher limits on request) Conversions: up to £5,000,000 |
| Cover Includes | Machinery cover (Does not apply to High Value Scheme) Contaminated land Additional costs/fees Removal of debris Alternative accomodation | Machinery cover (10 or 12 years from completion for projects up to £25m) Variable excess from £1,000 Contaminated land Additional costs/fees Removal of debris |
| Optional Cover Available | Builder insolvency (subject to approval) Loss of rent | Loss of rent |
